HYBE Chairman Bang Si-hyuk Faces Arrest Warrant for Capital Market Law Violation

Bang Si-hyuk, Chairman of HYBE, is facing the possibility of arrest over allegations of violating capital market laws.

On the 21st, the Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit announced that they have applied for an arrest warrant for Bang on charges of fraudulent trading.

Bang is accused of providing false information to existing investors about delays or the absence of plans for HYBE's IPO in 2019, leading them to sell their shares. The police allege that a private equity fund (PEF) established by a HYBE executive purchased these shares, and approximately 30% of the profit, amounting to around 190 billion KRW, was transferred to Bang after the IPO.

The investigation gained momentum last June when the police seized relevant materials from the Korea Exchange. In July of the same year, they conducted a search and seizure at HYBE's headquarters in Yongsan-gu, and in August, they imposed a travel ban on Bang. He was questioned five times as a suspect between September and November last year.

Recently, it was revealed that the U.S. Embassy in Seoul sent a letter to the police requesting permission for Bang to visit the U.S. The embassy cited reasons such as attending the U.S. Independence Day event in July and supporting BTS, a group under HYBE's Big Hit Music label, on their U.S. tour. However, the police applied for an arrest warrant just two days after the letter was reported, putting a halt to Bang's travel plans.

Park Jeong-bo, Commissioner of the Seoul Metropolitan Police Agency, stated at a regular press briefing on the 20th, "The investigation related to Chairman Bang is almost complete, and we are reviewing the legal aspects. We expect to conclude it soon." Regarding the U.S. Embassy's request, he added, "If a request is made, we will review its validity according to the law and principles."

Reported by Min-kyung Lee, Ten Asia 2min_ror@tenasia.co.kr